Thursday, July 28, 2011

After making the poor listing, share of Bharatiya Global Info ltd. literally took the nose drive and at the end of the day managed to settle at Rs.28.3, which is stupendous 65% discount to the issue price of Rs. 82.

Chart Courtesy: BSE

﻿This means investors have lost 65% of their investment in a single day. Recently there was a flood of fundamental-less stocks and some of those even gave awesome listing gains due to artificial price rigging by operators.

Again and again, I had cautioned my blog readers to stay away from such stocks. It is much easier for operators to do the price rigging in rising market to lure the gullible investors to buy the stock, and when investor flocks in to buy such shares, this is the time for operators to exit.

In the case of this issue as the market was falling, it appears operators could not muster the courage to artificially prop the share price and as the result stock nose dived.